Class 12 Micro Economics - Chapter Production and Costs NCERT Solutions | Why does the SMC curve cut the AVC curve

What is the total product of input?

When does a production function satisfy decreasing returns to scale? 

Explain the relationship between the marginal products and the total product of an input. 

What is the law of diminishing marginal product? 

The following table gives the total product schedule of labour. Find the corresponding average product and marginal product schedules of labour.

Why is the short-run marginal cost curve 'U'-shaped? 

What do the long-run marginal cost and the average cost curves look like? 

What are the average fixed cost, average variable cost and average cost of a firm? How are they related? 

What are the average fixed cost, average variable cost and average cost of a firm? How are they related? 

What does the average fixed cost curve look like? Why does it look so? 

What would be the shape of the demand curve so that the total revenue curve is?

(a) A positively sloped straight line passing through the origin?

(b) A horizontal line?

Explain market equilibrium.

Discuss the central problems of an economy.

What are the characteristics of a perfectly competitive market?

What do you mean by the budget set of a consumer?

From the schedule provided below calculate the total revenue, demand curve and the price elasticity of demand:

When do we say that there is an excess demand for a commodity in the market?

What do you mean by the production possibilities of an economy?

How are the total revenue of a firm, market price, and the quantity sold by the firm related to each other?

What is budget line?

What do you mean by substitutes? Give examples of two goods which are substitutes of each other.

What do you mean by a normal good?

Consider the demand curve D (p) = 10 – 3p. What is the elasticity at price 53?

Can you think of any commodity on which the price ceiling is imposed in India? What may be the consequence of price-ceiling?

What is budget line?

Explain price elasticity of demand.

List the three different ways in which oligopoly firms may have.

How does the imposition of a unit tax affect the supply curve of a firm?

If a consumer has monotonic preferences, can she be indifferent between the
bundles (10, 8) and (8, 6)?

Suppose a consumer can afford to buy 6 units of good 1 and 8 units of good 2
if she spends her entire income. The prices of the two goods are Rs 6 and Rs 8
respectively. How much is the consumer’s income?